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And, importantly, there already is an official diff tool: the "Compare" button.

Correct. Solely relying on the built in Word Compare tool results in a whole host of version control issues, however, which I outline in detail in my post "On Building Git for Lawyers."

https://theredline.versionstory.com/p/on-building-git-for-la...

Git supports registering custom diff tools for specific file types [1]

Wouldn't the obvious solution then be to take the tool they already use for redlining (e.g. Word's compare function) and integrate it into a git workflow?

[1] https://stackoverflow.com/questions/12356917/how-to-set-diff...

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